Question
Jan 1, 2020 - Issue 1,000 - $1,000 5-year 10% bonds, to yield 8%; Interest is paid semi-annually on June 30 th and Dec 31
Jan 1, 2020 - Issue 1,000 - $1,000 5-year 10% bonds, to yield 8%; Interest is paid semi-annually on June 30th and Dec 31st. (Round all numbers to nearest dollar throughout).
1.Calculate the PV of the bond obligation.
2.Make the original JE for issuance on Jan 1, 2020
3.Prepare the first four lines of the amortization table
4.Make the JEs for June 30 and Dec 31 of 2020.
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Foundations Of Financial Management
Authors: Stanley B. Block, Geoffrey A. Hirt, Bartley R. Danielsen
13th Edition
0073382388, 978-0073382388
